UPDATE 1-Foreigners sell Canadian securities in May, 1st time this year

OTTAWA, July 16 (Reuters) - Foreign investors sold their
holdings of Canadian securities in May in the first reduction
this year, led by a decrease in equities, data from Statistics
Canada showed on Thursday.

Non-residents sold C$5.45 billion ($4.21 billion) in
Canadian assets. Holdings in Canadian stocks decreased by C$5.66
billion as cross-border merger and acquisition activity saw
non-resident portfolio investors give up their shares to foreign
direct investors.

The decline was tempered by foreign purchases of Canadian
shares on the secondary market worth C$2.2 billion.

Foreign investment in Canadian bonds was muted, with an
increase of just C$514 million as the sale of government bonds
was offset by the purchase of corporate bonds.

Canadians, on the other hand, bought C$5.58 billion in
foreign securities, the second consecutive month of increases.
Canadians increased their equities positions by C$3.87 billion,
with purchases split between U.S. stocks and other foreign
shares.